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Biden Is Latest Dem to Support Ridiculous Free Housing Proposal

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Biden Is Latest Dem to Support Ridiculous Free Housing Proposal

Presidential candidate Joe Biden is the latest Democrat to throw their support behind the ridiculous idea that housing should be free

During an appearance yesterday, Biden said he agrees with “forgiving” both mortgage and rent payments. He says this as the country struggles with the coronavirus pandemic and 38 million Americans are without a job.

“There should be rent forgiveness and there should be mortgage forgiveness now in the middle of this crisis. Not paid later, forgiveness. It’s critically important to people who are in the lower-income strata.” said Biden

Tara Raghuveer, housing campaign director at People’s Action, a political network devoted to grassroots organizing, aired her opinion. She said, “The tenant is the most vulnerable person in the economy right now.”

She added, “The alternative to not canceling the rent is complete bottoming out of the market. And tens of millions of people literally never financially recovering from this moment.”

Calls for Housing Relief

Biden’s call for rent and mortgage relief echoes efforts by Minnesota Rep. Ilhan Omar. Omar introduced legislation that would bar landlords and lenders from collecting monthly payments. It would also impose late fees “through the duration of the pandemic.”

Under Omar’s plan, renters and mortgage borrowers who skip payments wouldn’t need to pay back anything once the rent and mortgage forgiveness policy ended. And any lender or landlord who violated the plan would face penalties.

Correctly, housing industry experts point out that allowing renters to skip payments also needs to consider the consequences of the landlords not being able to pay their own mortgages on the property.

“If multifamily landlords, particularly the small mom and pop landlords who own just maybe one to four units can’t make their mortgage payments and can’t stay in business, those are affordable units that are going to be lost to the private market,” said Flora Arabo, the national senior director of state and local policy at Enterprise Community Partners.

“Rent forgiveness without rental subsidies could be pretty catastrophic for tenants,” Arabo said.

Omar’s plan addresses these concerns, supporters say. It does so because it creates a fund for landlords and lenders so that they could recoup any losses.

Not surprisingly, Raghuveer’s organization, People’s Action, worked with Omar in drafting the bill. The organization threw in more stipulations for landlords to collect those funds. These include providing information on their revenues, refraining from discrimination based on the source of income, and other tenant protections.

Biden’s Impact

Biden’s support for the rent and mortgage forgiveness plans doesn’t really mean much. However, the biggest problem with these free housing proposals is that they demonize landlords. They let the tenants immediately skip payments, but force the landlords to deal with bureaucracy and red tape to receive relief funds.

According to the Census Bureau, individual investors own nearly 75% of our nation’s rental units, not massive corporations. Those mom and pop landlords likely aren’t any more sophisticated than their tenants. They would also find themselves in the same dire financial situation should they lose the ability to collect rent.

Bob Pinnegar, president and CEO of the National Apartment Association, said in a recent interview, “Rent cancellation proposals do not adequately address the problem and fail to recognize that many property owners are in the same dire situation as their residents — substantial loss of income amid ongoing financial obligations.”

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  1. Avatar

    Gerry

    May 28, 2020 at 2:03 PM

    Don’t we have a housing agency with people who should be intelligent enough to come up with an intelligent solution while this virus and lockdown BS is going on to suit both sides. We don’t need activist organizations helping write BS democommie agendas and we don’t need a terrorist loving, corrupt POS like omar writing her anti-American garbage. There has to be a solution — oh wait here’s one — END THIS FKNING LOCKDOWN, put people back to work so they can earn a living and pay their bills. Force these tyrannical wannabe dictator governors who want to completely destroy this country’s economy for purely political reasons to END THEIR FKNING INSANITY and put people back to work where they belong and then allow our Federal govt do their job without the interference from terrorist-loving, anti-American, obstructionist BS artists.

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Andrew Yang Wants You to Make Money Off Your Data by Making it Your Personal Property

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Andrew Yang, 2020 Democratic presidential candidate, plans to regulate the tech industry by prioritizing in giving people the right to own their personal data (“data as a property right”), thus allowing them to make money by sharing it with companies. Currently, companies entirely own users’ data – users do not have much control over it.

Yang said, “our data is now worth more than oil” and gave emphasis to the great amount of data people create and how companies make money over it. “By implementing measures to increase transparency in the data collection and monetization process, individuals can begin to reclaim ownership of what’s theirs,” he said.

He also cited a report saying that the collection and use of Americans’ personal data has become a $198 billion industry. Yang believes that people should have more control over their data, such as being able to see how their data is being used and having the freedom to opt out if they choose.

Yang added that we need politicians “who understand technology and a modern way to regulate it,” as reported by Engadget. “In order to regulate technology effectively, our government needs to understand it. It’s embarrassing to see the ignorance some members of Congress display when talking about technology, and anyone who watched Congress question Mark Zuckerberg is well aware of this,” said Yang.

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What Bitcoin’s Split Means for You

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The Bitcoin Spilt and What it Can Mean Short Term

Functionally speaking, the attraction to Bitcoin is that it’s virtually created and is limitless; 1s and 0s make up the crypto-currency and thus it has no end…that is unless buyers evaporate…

Bitcoin Cash launched this week is to be run side by side with Bitcoin. The good news is that if you had one Bitcoin before the split, you now have two. The bad news is that Bitcoin proper is worth about $2,700 a unit and Bitcoin Cash is around $600 but only if you sell now. So hold on…

It’s only been a day so the fact that traditional Bitcoin users are choosing to hold on makes sense. The spilt made you an extra $600, on paper at least. In the worst case scenario, Bitcoin Cash could be D.O.A and you still lost nothing, provided you don’t sell off the traditional Bitcoin at a loss.

Main Reason for the Split

https://thecapitalist.com/bitcoin-split/

 

Like Bitcoin, the Cash creators are hoping for the same critical mass. It was invented by supporters worried about the congestion in the main network with payments and higher processing fees. The Cash concept removes that and could allow overall maximized exposure for Bitcoin, in addition to easier use.

Technically speaking, it would be trivial to change that one megabyte limit to a higher value. But proposals to do so have faced opposition from traditionalists who argue the limit is actually an important feature of Bitcoin‘s design that protects the network’s democratic character. To participate in the network’s peer-to-peer process for clearing transactions, a computer needs a copy of every transaction ever made on the Bitcoin network, which adds up to gigabytes of data per month. Even still, there’s more collateral backing Bitcoin than most national currencies; in that consumers pay to own it.

They could have started over with an empty block chain; the crypto currency version of a clean slate. But if they’d done this the new software would likely have languished in obscurity. Instead, they chose to branch off from the existing Bitcoin block chain. Bitcoin Cash has the same transaction history prior to August 1, 2017, which means that anyone who owned ordinary Bitcoins before the switch owns an equal number of Bitcoin Cash units, secured by the same cryptographic keys, after the switch.

Basically, if you believe in owning Bitcoins at $2,700, stay. You probably have made your money. Bitcoin Cash, at $600 could be a great investment (and boon after the split) in that the technology could make the growth leap forward years ahead because of the Bitcoin brand.

At the end of the day, these guys are service providers. IF Bitcoin proper suffers at all, Bitcoin Cash could evaporate just like that! If you were not a beneficiary of the split, wait before you buy outright.

Check out what Bloomberg Technology had to say about the split

As crypto-currencies go, it’s already third behind Bitcoin proper and Ethereum. But don’t get hasty as Bitcoin Cash is roughly 24 hours old. Pessimism and optimism are in the eye of the beholder and one should always mind their wallet when the beholder is out to sell “the next big thing.”

 

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Social Security 101: Surviving Insolvency

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Social Security 101: Surviving Insolvency

It has emerged from the battle of left and right wing parties that social security is under threat.

Speculated by many, the program may be unsustainable by the year 2034, which is 19 years from now.

How bad is the current state of social security?

William Baldwin, contributor from Forbes said:

“Social Security is doomed; it has more money going out in benefits than from what’s coming in with payroll taxes. The US Treasury is trying to cover costs by collecting income tax, printing money, and borrowing.”

Currently, $714 billion is going out in benefits and overheads, with payroll taxes only bringing in $646 billion.

This short of inflow is the predicted cash flow, taking the budget into account from 2010.

social security cash flow

Cash flow graph analysis:

This data shows the clear nosedive in funds, as it meets negative figures by 2015.

Social Security has been in the red for a year, and it’s bound to get messy for those who survive on benefits.

A trust fund was initially set up, leaving aside a $2.7 billion, but it has recently been discovered that the fund doesn’t exist.

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The consequence of social security going bust

A Social Security bust means a risk to the social security payouts, and everybody’s payouts will stop – as well as vital public services facing closure.

The short-term

Benefits won’t be axed immediately, but the insolvency does mean major overhauls will be made to the Social Security Administration – particularly in the areas of benefit eligibility and payroll taxes.

Many people have resorted to drawing benefits out early, with some as young as 62.

This is because the majority are afraid of Congress making cuts, or stopping payouts.

What happened to Social Security’s trust fund?

Unlike a standard trust fund where savings are used to finance capital assets (services, businesses, etc.), the Fed instead made investments into their bonds.

If we take an example:

A fish stall holder puts away $30 a week in savings, but when his fishermen stop catching fish, he then starts using emergency funds and replaces the value with a bit of paper which says IOU – retirement.

If you are using savings to patch up the profit loss, then it’s never good news in the long term.

Eventually, this way of thinking would ultimately blitz his business, especially if the money put aside is no longer there to help.

How about the income side of social security?

Theoretically, the bond interest and a portion of income tax collections should be creating the payouts.

The following is a graph showing the growing gap between outgoings and revenues:

P1.2-1

Also note:

There have been attempts to boost tax returns.

One example of this is the quantity of tax disclosure has gone up to 85%, from only used to being 50% in the good old days.

The population boom danger

The population boom certainly doesn’t help matters, especially with all the baby boomers now planning retirement.

The mass retirement is probably a foreseen issue as for the massive births during the baby boom years.

Let’s have a look at the population growth in the USA from 1961 – 1985:

P1.3

Graph Analysis

  • Not only is social security experiencing lower income, but also the after effects of the big baby boomer spike now all coming through to retirement.
  • There just doesn’t seem to be any hope, unless the agency undergoes drastic measures to change their methods of business, looking at the figures.
  • Future outlook:
  • If they do not do anything soon, then its predicted only 75% will receive their promised benefits and the trust will be thoroughly exhausted.
  • Ideas on ways that Congress could rebalance outflow and income:

The following would seem like a shrewd move by the government, however given the rate at which the population is growing they become absolutely imperative:

  • Make cuts to cost of living adjustment by limiting damage to those on higher income or a legislator could play around with the formula.
  • Raise payroll tax; a bigger contribution would potentially give a two-point boost on closing up revenue s
  • Put up the retirement age; now being 66, if it went up to 69 then this would cut benefits by 10%.
  • As Chris Christie proposition, if you reduce social security payments to retirement incomes above $80,000 (and completely stopping if over the $200,000 bracket), then less money would be wasted on those who don’t need it.
  • Raise income tax from 85% to 100% on the maximum fraction benefits.

 

Is Congress likely to take action?

The first five bullet points are most likely to be put into movement in a diluted combination, while overall it is unlikely that the rich will be the target.

What can you do?

Find out how much your social security benefits are worth.

There’s even an online calculator available, which will apply all the formulas you need.

It can calculate the following:

  • Your benefit streams of income.
  • Any discounted time off you take.
  • Your health and mortality.

What you should not do:

It would be a big mistake now to start claiming early, even those doing it now, could be making a big mistake by messing up their financial future.

What you can do:

Instead, focus on your career, as the benefit formula only counts 35 of your highest earning years – go 45 years and then quit at 62 (early retirement).

You do have the risk of payroll taxes going up, so that’s why it’s a good idea to start planning for early retirement.

You should consider going Roth IRA:

  • IRA stands for Individual Retirement Arrangement
  • This IRA is a type of retirement plan, subject to US law, which offers a tax deduction to savings under certain conditions.
  • It is significantly different to other plans, as the tax break comes from withdrawal rather than on the amount saved.
  • The advantages of a Roth IRA:
  • You can withdraw money which is a penalty and tax-free after five years but is subject to qualifying terms and conditions.
  • If you make the maximum $10,000 from earnings, then withdrawals can also qualify if the Roth IRA owner is using the savings to purchase the primary residence (also by the Roth IRA owner’s immediate family, descendants, and ancestors – if they haven’t brought a home in 24 months).
  • You can still make contributions to a Roth IRA, even if the holder has any other plans in place – like the 401(k) plan (do note that other retirement plans may not be tax deductible).
  • In the event of death for the retirement plan holder, then his/her spouse will inherit the Roth IRA trust, and will merge if they own a separate account.
  • They have higher limits to contribution (in comparison to standard IRAs); this is because the post-tax contribution is a larger equivalent to a bigger pre-tax contribution from any other IRA plans – the tax deduction will give you higher returns from your savings.
  • The majority of employer funds tend to be more similar to the standard IRA plans, rather than Roth. Ultimately, you’ll diversify tax risk and gain higher returns for your pension pot.
  • Large estates can also have taxes reduced.
  • However, there are some disadvantages to a Roth IRA:
  • You can’t use the funds as collateral towards any loans, financial leverage or any cash management tools used for investment.
  • Qualifying for a Roth will be determined by your income limit, whereas the standard IRAs do not have any income limits.
  • While withdrawals are subsidized in this unique plan, contributions to Roth are not subject to tax deductions – so is only beneficial for after retirement.
  • It doesn’t reduce the taxpayer’s adjusted gross income (AGI), in comparison to other retirement plans where AGI can be reduced (this can benefit for minimizing taxable income) – other perks that are missed are a disqualification for deductions and tax credits. Other lost subsidies include reducing student loans, child tax credit, and earned income credit.
  • The contribution set at the current taxpayer’s income tax rate – it’s the norm for the majority in retirement to see their income fall, which also downgrades the retiree’s tax bracket. The reduction of the bracket can certainly put some risk into your retirement investment (this may also be likely if Congress lower income tax rates before the retirement age). So the more traditional plan would otherwise benefit from providing immediate tax breaks.
  • If a taxpayer pays state income taxes, while also paying into a Roth IRA, then they’ll have to pay the state income tax towards the contributions in the same year. But if the taxpayer retires on a lower income tax rate (or on no income taxes), then the opportunity is lost to avoid paying state income taxes – an advantage offered by the traditional IRA pension plans.

Conclusion

There are always pros and cons for doing something, so whether you go the Roth IRA route or not will depend on your personal circumstance. However, forming a private pension plan and being less reliant on the state may be thanked by your future self – especially with social security facing much uncertainty.

There are many methods for taking control of your financial future, for example, downloading an online calculator like My Money Platform.

Not only can they accurately work out your retirement age and how much you can earn, but also increase saving contributions by scrutinizing your budget.

Taking control of your finances now will offer you a much brighter retirement, where you can enjoy life and spend more time with family and friends.

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